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Blockchain Basics

A non-technical introduction in 25 steps

About the Book

This book bridges the gap between purely technical and purely business-focused
explanations of the blockchain.

In 25 concise steps, this book teaches the basics of blockchain technology
in a non-technical fashion. Besides the technical nature of the blockchain this
book does not require any previous knowledge in computer science, mathematics,
programming or cryptography. Due to its didactic concept, this book provides a self-contained learning
path through all the components of the blockchain and their underlying
technical concepts and principles.

Why this Book?

If you want to learn how the blockchain works, you may find
yourself lost in a universe of books that either quickly skim through
the technical concepts or that discuss the underlying technical principles at
a highly formal level.
The former may leave you unsatisfied because these books miss to explain the
technical details necessary to understand and to appreciate
the blockchain while the latter may leave you unsatisfied because
those books already require the knowledge you want to acquire. "Blockchain Basics" is different because it not only
fills the gap between purely technical books and purely business-focused books but also teaches all concepts and principles of the blockchain in
a non-technical fashion. It does so by using a didactic concept that is based on pictorial explanations, analogies, and metaphors.

Features of the book

No technical background required

"Blockchain Basics" does not require any previous knowledge in computer science, mathematics,
programming or cryptography.

No previous knowledge required

"Blockchain Basics" is completely self-contained.
It does not require any previous knowledge of
the blockchain.

No mathematics or program code

"Blockchain Basics" deliberately does not use any
mathematical formulas, mathematical notation or program code.

No Bitcoins

"Blockchain Basics" does not specifically focus on Bitcoin. However, it does explain the
technology behind Bitcoin.

Conversational Style

"Blockchain Basics" avoids computer science or cryptography jargon.
It explains technical concepts in a conversational style
in order to avoid any hurdle in learning the blockchain.

Didactic Concept

"Blockchain Basics" utilizes a didactic concept that is based on
pictorial explanations, analogies, and metaphors.
It specifically focuses on explaining the technical concepts of the blockchain
to a non-technical audience.

Incremental Learning Steps

"Blockchain Basics" consists of 25 carefully chosen steps
that form a learning path to incrementally buid your knowledge on blockchain.

Highlighting all major concepts

"Blockchain Basics" covers all major components of the blockchain as well as their underlying
technical concepts and principles.

Covered Technologies and Concepts

Hash Values

Cryptographic Hash Functions

Hash Puzzles

Asymmetric Cryptography

Public-Private-Key Cryptography

Digital Signatures

Security

Identification

Authentification

Authorization

Merkle Trees

Blockchain Data Structure

Immutability

Proof of Work

Ownership

Transfer of Ownership

Transaction Data

Secure Transactions

Double Spending

Software Architecture

Distributed Systems

Peer-to-Peer Systems

Network Communication

Integrity

Distributed Consensus

51% Attack

Blockchain Algorithm

Blockchain Technology Suite

Scope of the book

Technical Background

"Blockchain Basics" explains the background, the concepts, and the technical principles of the blockchain.
It also explains the environment in which the blockchain
operates and how it fits in a broader scope of technology.

Purpose

"Blockchain Basics" explains the purpose of the blockchain, what problem
it solves, and why solving that problem is important.

Terminology

"Blockchain Basics" introduces and explains the terminology used in the context
of the blockchain.

Applications

"Blockchain Basics" explains generic use cases and specific application cases of the blockchain.

Components

"Blockchain Basics" explains the major components of the blockchain, what they are and how they work.

Technical Principles

"Blockchain Basics" explains the technical principles behind the components of the blockchain, what they are, how they work,
and why they work as intended.

Functioning

"Blockchain Basics" explains how the components of the blockchain and their underlying technical principles work in isolation and
how they interact in order to create the machinery that is called the blockchain.

Characteristics

"Blockchain Basics" highlights the characteristics of the blockchain and how they relate to the components, concepts, and technical
principles.

Didactic Concept

"Blockchain Basics" consists of 25 steps that form a learning path which
incrementally builds up your knowledge of the blockchain. The individual learning steps are grouped into five major learning stages
that address the major questions to be asked when being introduced to a new technology: What is it? Why do we need it?
How does it work? What can we do with it? How may it evolve in the future?

Stage 1: Terminology and technical foundations

The first learning stage explains major concepts
of software engineering and sets the terminology necessary for understanding all successive steps.
By the end of this stage you will have gained an overview of
fundamental technical concepts and an appreciation of the big picture in which the blockchain is located.

Stage 2: Why the blockchain is needed

The second stage explains why the blockchain is needed, what problem it solves,
why solving the problem is important, and what potential it has.
By the end of this stage you will have gained a good understanding of the problem domain
in which the blockchain is located, the environment in which it provides
the most value, and why people are so excited about it.

Stage 3: How the blockchain works

The third learning stage is the centerpiece of this book since
it explains how the blockchain works internally.
This stage guides you through the major components of the blockchain
and their underlying technical concepts. By the end of this stage
you will have reached a solid understanding of all the major components and concepts of
the blockchain, how they work in isolation, and how they interact in
order to create the big machinery that is called Blockchain.

Stage 4: Limitations and how to overcome them

The fourth learning stage focuses on major limitations of the blockchain,
the reasons, and possible ways to overcome them.
By the end of this stage you will understand why the original idea of
the blockchain as explained in the previous stages may not be suitable
for large scale commercial applications, what changes are needed to overcome
these limitations, and how these changes work.

Stage 5: Using the blockchain, further developments, and outlook

This stage concludes our intellectual journey of the blockchain.
It considers how the blockchain can be used in real life,
what generic use cases exist, and how to analyze existing blockchain applications.
This stage also points out areas of active research and further development.
By the end of this stage you will have gained a well-grounded understanding
of major application scenarios of the blockchain, its most important advances,
its possible long-term accomplishments and its major disadvantages.

Table of Contents

Stage 1: Terminology and Technical Foundations

Step 1: Thinking in layers and aspects

Step 2: Seeing the big picture

Step 3: Recognizing the potential

Stage 2: Why the Blockchain Is Needed

Step 4: Discovering the core problem

Step 5: Disambiguating the term

Step 6: Understanding the nature of ownership

Step 7: Spending money twice

Stage 3: How the Blockchain Works

Step 8: Planning the blockchain

Step 9: Documenting ownership

Step 10: Hashing data

Step 11: Hashing data in the real world

Step 12: Identifying and protecting user accounts

Step 13: Authorizing transactions

Step 14: Storing transaction data

Step 15: Using the data store

Step 16: Protecting the data store

Step 17: Distributing the data store among peers

Step 18: Verifying and adding transactions

Step 19: Choosing a transaction history

Step 20: Paying for integrity

Step 21: Bringing the pieces together

Stage 4: Limitations and How to Overcome Them

Step 22: Seeing the limitations

Step 23: Reinventing the blockchain

Stage 5: Using the Blockchain, Summary, and Outlook

Step 24: Using the blockchain

Step 25: Summarizing and going further

Preview

A detailed preview of the book's content can be found on
Google Books.